Banco BPM, Italy’s third-largest lender, has rejected a €10 billion hostile takeover bid from UniCredit, the country’s second-biggest bank. Banco BPM’s board stated the offer did not reflect its true profitability or potential for value creation.
In a statement, the board emphasised the bid was unsolicited and failed to account for Banco BPM’s growth opportunities. It highlighted recent transactions and actions in the 2023-2026 industrial plan, which will lead to updated objectives already shared with the market.
The board expressed concerns over employment impacts and social repercussions linked to UniCredit’s cost-saving measures. UniCredit estimated €900 million in gross cost synergies, representing over a third of Banco BPM’s cost base. These figures, the board noted, raised significant worries about job losses and other fallout.
Banco BPM criticised UniCredit for undervaluing revenue and synergy potential in its bid. The bank reaffirmed its commitment to pursuing its industrial plan and completing a takeover bid for Anima. Banco BPM said it remained focused on creating value for shareholders and stakeholders.
Government React to Bid
Deputy Prime Minister Matteo Salvini criticised UniCredit’s foreign ownership, warning against derailing plans to create a domestic banking hub. Salvini said UniCredit’s shareholder structure, where 69% is held by foreign investors, classified it as a foreign institution. BlackRock, an American fund, holds a 7% stake, while Italian institutional investors own only 6%.
Salvini stressed that the bid could threaten plans to merge Banco BPM with Monte dei Paschi di Siena (MPS) to form Italy’s third banking hub. He called for caution to ensure national banking interests are preserved.
Premier Giorgia Meloni’s government is reportedly considering invoking its ‘golden power’ clause to block the takeover bid, viewing Banco BPM as a strategically important asset.
Credit Agricole’s Position
French banking giant Credit Agricole, Banco BPM’s largest shareholder with a 9.2% stake, stated it had not sought European Central Bank approval to increase its holding beyond 10%. This clarification comes amid speculation about its role in Banco BPM’s future.
Banco BPM director Mauro Paoloni confirmed the board viewed UniCredit’s bid as hostile when questioned before a meeting to assess the offer.
